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FAQ Answers Round 4: Reds Operations

Time to answer the fourth batch of those pesky FAQ Questions!

We're answering one set of questions at a time. The fourth round of answers will be on the "Reds Operations" category. Post your answers to any or all sections of the question in this thread. I will compile and incorporate them into this first post.

Feel free to post links to threads if you think they contain particularly good answers or might be difficult to identify as such.

There must be other good questions to be found in this category, so feel free to submit those, too.

So far I'm mining the following threads:
(none yet)

As far as the form of your answer, you can either go with a "just the facts" format or make a post with full sentences as if someone had asked the question. If you want to disagree with an earlier answer for some reason, that's fine, too.

Rough Draft of Round 4 Answers:

Category: Reds operations

Q: Who own the Reds?
A: Carl H. Lindner is the CEO of the Reds and the general partner of the ownership group.

His other partners are Mrs. Louis Nippert, William J. Reik Jr., and George L. Strike.

In addition, Gannett Co., Inc.--parent company of the Cincinnati Enquirer--owns a one-fifteenth share in the team.

Also, at the time of her death in 2004, Marge U. Schott owned one-fifteenth of the team. According to published reports, her share is likely to be sold back to the ownership group for about $6.5 million, with the money going to one of Schott's foundations.

Q: I want to send a letter/email/item to my favorite Reds' player/coach. How can I do this?
A: Player email addresses are not revealed to the public. Fan mail can be sent to:

Q: I think Wily Mo Pena should be in the minor leagues, but I understand his contract requres him to be in the majors. Why can't the Reds and Wily Mo restructure his contract so that he can go to the minors?
A: When young Wily Mo Pena was signed by the Yankees, he was given a major league contract, rather than a minor league contract. All players who have major league contracts must be placed on their team's 40-man roster. All players who are on their team's 40-man roster but are not on their team's 25-man major league roster, are considered to be on "optional assignment." People who originally signed when they were younger than 19 (like WMP did) are allowed to be on "optional assignment" for a total of four years. Those four years have elapsed, so according to the Collective Bargaining Agreement between Major League Baseball and the Major League Baseball Players Association, Wily Mo Pena must appear on his team's 25-man roster, in addition to its 40-man roster.

The only way to remedy this situation is to request "waivers" on WMP. If all 29 of the other teams allow WMP to pass through "waivers," then the Reds can send him down.

It is considered likely that some team would claim WMP if he were placed on waivers, in which case the Reds would lose WMP to the team claiming him, and would receive only a small amount of cash in return.

Q: How much revenue does the team receive from radio and TV broadcasting contracts?
A: Their local cable deal pays $5 million annually.

The amount of their local radio deal hasn't been disclosed, but it is described in the press as "lucrative." When perusing the media figures presented by Forbes and MLB, one gets the impression that the radio deal pays about as much as the cable deal.

There is no local broadcast TV deal.

In addition to local broadcasting revenue, the team gets an equal share from the national broadcast deals with FOX, ESPN, Media Player, and Extra Innings.

The FOX deal pays each team $13,333,333 per season. The ESPN deal is worth half that. The value of the Extra Innings deal has not been disclosed. The streaming audio deal pays each team $666,667.

Q: How do insurance claims work on players? Why didn't insurance cover Ken Griffey, Jr.'s salary when he was unable to play for extended periods of time?
A: First the team gets a policy on a player. If the player is injured and out for a specified length of time (usually with the same injury) then the team can have the player examined by an impartial doctor or doctors to determine if he is fit to play. If he is determined not fit to play, then the team can begin to collect under the terms of the policy.

The Reds insurance policy on Mr. Griffey has a 90 day wait before paying. This is known as the deductible. Under the deductible, Griffey would have to miss 90 consecutive days with the same injury for the Reds to begin collecting. So far, he has not missed 90 consecutive days with the same injury so the Reds have not collected anything on the policy.

90 days was the standard deductible at the time of Griffey's signing. It is somewhat more difficult to obtain the insurance now so many teams have a 182 day deductible, which translates to about 162 games.

The Reds would be reiumbursed for 75% of Jr's salary (the Orioles had a 70% or 80% policy on Albert Belle depending on the source).

Position, age, health history, length of coverage, and percentage of contract covered are figured into the premium. Maximum coverage is 5 years, though many insurance companies are said to be unwilling to offer coverage of more than 3 years.

Re: FAQ Answers Round 4: Reds Operations

Originally Posted by Unassisted

Q: How do insurance claims work on players? Why didn't insurance cover Ken Griffey, Jr.'s salary when he was unable to play for extended periods of time?
A:

First the team gets a policy on a player. If the player is injured and out for a specified length of time (usually with the same injury) then the team can have the player examined by an impartial doctor or doctors to determine if he is fit to play. If he is determined not fit to play, then the team can begin to collect on the policy.

The Reds insurance policy on Mr. Griffey has a 90 day wait before paying. Jr. would have to miss 90 consecutive days with the same injury in order for the Reds to begin collecting. So far, Jr. has not missed 90 consecutive days with the same injury so the Reds have not collected anything.

90 days was pretty standard at the time of Jr's signing. It is somewhat more difficult to obtain the insurance now so many teams have a 182 day waiting period, or about 162 games.

The Reds would be reiumbursed for 75% of Jr's salary (the Orioles had a 70% or 80% policy on Albert Belle depending on who you believe).

Position, age, health history, length of coverage, and percentage of contract covered are figured into the premium. Maximum coverage is for 5 years, though I understand many insurance companies are unwilling to offer coverage for more than 3 years.

I do remember reading something where the Reds had a 90 day "deductible". I could never really get a good answer on whether this meant the Reds had to wait 90 days or (90 waiting + 90 deductible) 180 days to collect on a Jr. injury.

Re: FAQ Answers Round 4: Reds Operations

Carl H. Lindner is the CEO of the Reds and the general partner of the ownership group.

His other parters are Mrs. Louis Nippert, William J. Reik Jr., and George L. Strike.

In addition, Gannett Co., Inc.--parent company of the Cincinnati Enquirer--owns a one-fifteenth share in the team.

Also, at the time of her death earlier this year, Marge U. Schott owned one-fifteenth of the team. According to published reports, her share is likely to be sold back to the ownership group for about $6.5 million, with the money going to one of Schott's foundations.

Re: FAQ Answers Round 4: Reds Operations

Originally Posted by Unassisted

Q: I think Wily Mo Pena should be in the minor leagues, but I understand his contract requres him to be in the majors. Why can't the Reds and Wily Mo restructure his contract so that he can go to the minors?
A:

When young Wily Mo Pena was signed by the Yankees, he was given a major league contract, rather than a minor league contract. All players who have major league contracts must be placed on their team's 40-man roster. All players who are on their team's 40-man roster but are not on their team's 25-man major league roster, are considered to be on "optional assignment." People who originally signed when they were younger than 19 (like WMP did) are allowed to be on "optional assignment" for a total of four years. Those four years have elapsed, so according to the Collective Bargaining Agreement between Major League Baseball and the Major League Baseball Players Association, Wily Mo Pena must appear on his team's 25-man roster, in addition to its 40-man roster.

The only way to remedy this situation is to request "waivers" on WMP. If all 29 of the other teams allow WMP to pass through "waivers," then the Reds can send him down.

It is considered likely that some team would claim WMP if he were placed on waivers, in which case the Reds would lose WMP to the team claiming him, and would receive only a small amount of cash in return.

Re: FAQ Answers Round 4: Reds Operations

Originally Posted by Unassisted

Q: How much revenue does the team receive from radio and TV broadcasting contracts?
A:

Their local cable deal pays $5 million annually.

The amount of their local radio deal hasn't been disclosed, but it is described in the press as "lucrative." When perusing the media figures presented by Forbes and MLB, one gets the impression that the radio deal pays about as much as the cable deal.

There is no local broadcast TV deal.

In addition to local broadcasting revenue, the team gets an equal share from the national broadcast deals with FOX, ESPN, Media Player, and Extra Innings.

The FOX deal pays each team $13,333,333 per season. The ESPN deal is worth half that. The value of the Extra Innings deal has not been disclosed. The streaming audio deal pays each team $666,667.

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